Capital allocation advisory
Where the cash goes decides what the company becomes. We help leadership teams put capital behind the projects, acquisitions and businesses that will earn the best return.
When clients call us
Every capital decision is a choice between options
Clients usually come to us with a significant decision about where to invest, what to buy or what to exit.
A major capital project
A new facility, system or expansion needs a clear view of cash flows, payback and risk before you commit.
An acquisition opportunity
An acquisition only makes sense when the value you can extract exceeds the price you must pay.
An underperforming division
A business unit is consuming capital and weighing on the value of the whole company.
More cash than the business needs
The company is generating surplus cash, and you need to choose between reinvestment, acquisitions, paying down debt and returning it to owners.
Competing investment requests
Several parts of the business want funding, and you need a consistent way to compare them.
Growth without new capital
You want to fund growth from internal cash flow rather than new debt or equity.
How we help
Better decisions on where capital goes
Capital allocation advisory for owner-led and investor-backed companies. Built on our corporate finance work, it helps leadership teams evaluate investments, expansions and divestments on the returns they will earn.
Investment cases and feasibility
Cash flows, return profiles, payback and risk for major capital projects, built on market studies and financial models.
Acquisition valuation
What a target is worth to you, the value that can be extracted, and the price at which the deal stops making sense.
Divestments and spin-offs
Which business units to keep and which to exit, and how to exit while capturing the most value.
Free cash flow improvement
Cost structure, cash conversion and working capital, analyzed to release cash for reinvestment.
Capital budgeting framework
A consistent process for comparing projects on return, risk and strategic fit, with hurdle rates the whole business understands.
Returns to owners
When reinvestment is not the best use of cash, a clear analysis of debt repayment, dividends and share repurchases.
Our view
The best companies are disciplined allocators
Highly successful companies tend to be consistent and dynamic allocators of capital. They keep investing in the businesses that work, add new ones when the price is right, and exit the ones that do not earn their keep.
An investment is only attractive when there is a real gap between value and price. We help leadership teams measure that gap, with the same discipline for a new machine, an acquisition or a decision to hold cash.
How an engagement works
Five steps from options to decision
We work with the CEO and the finance team, either on a specific decision or on the allocation process as a whole.
- FrameDefine the decision, the options and the criteria that matter.
- ModelBuild cash flow and return models for each option.
- TestStress test the assumptions and compare the options on return and risk.
- RecommendSet out the recommendation and the conditions under which it would change.
- TrackMeasure results against the original case, so the next decision is better informed.
Weighing a major investment or divestment?
What you receive
Decisions you can defend to a board
Every deliverable is built for leadership teams, boards and investors.
- Investment cases with cash flows, IRR and payback
- Valuation of acquisition targets and synergies
- Divestment analysis and exit options
- A free cash flow and working capital review
- A capital budgeting framework and hurdle rates
- Post-investment reviews against the original case
Selected clients
Companies we have worked with
Frequently asked questions
Questions we hear most often
What is capital allocation?
Capital allocation is how a company decides to deploy its financial resources: reinvesting in existing businesses, funding new projects, making acquisitions, exiting businesses or returning cash to owners. Over time, it is one of the main drivers of shareholder returns.
Is this only for large companies?
No. Owner-led companies face the same choices on a smaller scale, and each decision is a larger share of the business, so getting it right matters as much or more.
How do you compare very different projects?
We put every option on the same footing: cash flows, return on invested capital, payback and risk, and then weigh strategic fit. The framework makes trade-offs visible rather than hidden.
Can you help with a divestment?
Yes. We assess which business units to exit and how, and support the sale through our M&A advisory practice.
Do you only work with companies in Vancouver?
No. We are based in Vancouver and work with companies across British Columbia and Canada.
How are fees set?
Fees depend on the scope and complexity of the work. We confirm them in an engagement letter after a first conversation, so the cost is clear before work begins.
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